Chemmanur Credits and Investments is launching a new secured Non-Convertible Debenture (NCD) issue that opens for subscription from June 3, 2025, to June 16, 2025. The NCDs offer interest rates up to 12% and effective yields up to 12.68%. The tenures range from 366 days to 70 months, and interest payment modes include monthly and cumulative options. Should you invest in Chemmanur Credits NCD June 2025? Let’s do a detailed review.
About Chemmanur Credits and Investments Limited
Chemmanur Credits and Investments Limited is a non-deposit-taking NBFC (base layer) registered with the RBI. Incorporated in 2008, the company is primarily involved in providing gold loans by pledging household gold jewellery. It also offers microfinance, business and personal loans, and acts as a distributor for third-party insurance products.
As of September 30, 2024, it operates through 282 branches across Kerala, Tamil Nadu, Karnataka, Maharashtra, and Andhra Pradesh, employing 1,424 personnel. The company is part of the Boby Chemmanur Group, which also runs gold jewellery businesses globally.
Chemmanur Credits NCD June 2025 – Issue Details
- Issue Opens: June 3, 2025
- Issue Closes: June 16, 2025
- Issue Size: ₹ 50 Crores (Base) + ₹ 50 Crores (Green Shoe) = ₹ 100 Crores
- NCD Face Value: ₹ 1,000 each
- Minimum Investment: ₹ 10,000 (10 NCDs)
- Credit Rating: IND BBB-/Stable (India Ratings)
- Listing: BSE
- Allotment Basis: First Come First Serve
- Debenture Trustee: Mitcon Credentia Trusteeship Services Limited
Chemmanur Credits NCD June 2025 – Coupon & Yield Details
| Series | Tenor | Frequency | Coupon Rate | Effective Yield | Maturity Amount |
|---|---|---|---|---|---|
| I | 18 M | Monthly | 10.50% | 11.02% | ₹ 1,000 |
| II | 24 M | Monthly | 10.90% | 11.46% | ₹ 1,000 |
| III | 36 M | Monthly | 11.30% | 11.90% | ₹ 1,000 |
| IV | 60 M | Monthly | 12.00% | 12.68% | ₹ 1,000 |
| V | 366 D | Cumulative | NA | 9.50% | ₹ 1,095.27 |
| VI | 24 M | Cumulative | NA | 11.00% | ₹ 1,232.00 |
| VII | 70 M | Cumulative | NA | 12.62% | ₹ 2,000.28 |
Financial Highlights (Restated Consolidated)
| FY Ended | Revenue (Cr) | PAT (Cr) | Assets (Cr) | Reserves (Cr) |
|---|---|---|---|---|
| Mar-22 | 73.49 | 2.66 | 430.46 | 26.52 |
| Mar-23 | 83.21 | 0.80 | 499.42 | 27.41 |
| Mar-24 | 106.14 | 1.72 | 635.04 | 29.03 |
Why to invest?
- Attractive Interest Rates: Interest up to 12% p.a. and effective yields up to 12.68%.
- Secured NCDs: Backed by company assets, offering greater safety over unsecured options.
- Flexible Tenure Options: Tenure ranges from 366 days to 70 months with monthly or cumulative interest.
Why not to invest?
- Lower Credit Rating: BBB-/Stable is considered moderate risk. Prefer A/AA/AAA-rated bonds for more safety.
- Fluctuating Profits: PAT dropped in FY23 and rebounded in FY24, indicating some volatility.
- NBFC Sector Risk: Subject to RBI regulations and operational risk in the gold loan and microfinance space.
How to Apply?
The NCD issue is available only in demat form. You can apply through your broker platform or download the form from the lead manager’s website. NCDs will be listed on BSE for liquidity post-allotment.
Chemmanur Credits NCD June 2025 – Should You Invest?
Chemmanur Credits NCD June 2025 offers high interest rates, making it attractive for high-risk investors. However, the moderate credit rating and profit volatility are concerns. Conservative investors should consider safer, higher-rated bonds. Always evaluate based on your risk appetite and read the prospectus carefully before investing.
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